Global trends in digital commerce - implications for traditional retail
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Digital commerce is growing very rapidly with emerging trends in how people research and buy. This is also posing survival challenges to traditional offline retailers. This presentation covers both aspects.
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Global trends in digital commerce - implications for traditional retail
- 1. GLOBAL TRENDS IN DIGITAL COMMERCE RAMKUMAR NARAYANAN GM – eBay Product Development Center
- 3. $1 TRILLION IN D-COMMERCE SALES (2012) ASIA-PACIFIC POISED TO BE #1 IN D-COMM INTERNET INFLUENCING RETAIL SALES M-COMMERCE IS SATURATING THE GLOBE
- 4. ONLINE RETAIL D-COMMERCE Trends & Opportunities
- 12. PAYMENT & LOGISTICS NEED TO SHINE
- 13. CONSISTENT DELIVERY WILL BE TESTED
- 14. TRUST NEEDS TO BE (RE)BUILT
- 15. OFFLINE RETAIL BRICK N MORTAR
- 16. BUT… RAPIDLY CHANGING BUYER PREFERENCES FORCING EVOLUTION 95% RETAIL SALES STILL OCCUR IN STORES
- 21. “ONE SIZE FITS ALL” ORGANIZATIONAL MINDSET WALL LESS OMNI-CHANNEL RETAIL
- 22. PLAY TO WIN AND NOT TO LOSE
- 23. REHAUL OF THE VALUE CHAIN UNLOCK TREASURE TROVE OF DATA FOR INSIGHT BUILD CUSTOMER TRUST AND MINDSHARE OMNI-CHANNEL
- 24. IMPLICATIONS? FANTASTIC OPPORTUNITY The fun is just starting! HOTBED OF INNOVATION GLOBAL ARENA
Notes de l'éditeur
- Reference: emarketer/ inmobi reportsEcommerce sales topped $1 trillion for the first time in 2012Internet is influencing retail sales60% of U.S. retail sales will involve the web by 201738% of all retail transactions across clothing, electrical and home sectors were now influenced by the internet.M-commerce is saturating the globe -23% of e-retail transactions on Thanksgiving and Black Friday came from mobile devices.Nearly 65% of emails in US are opened on mobile devices33% of online shoppers, at top 10 stores in US shop only on mobile devices83% of global shoppers who use mobile devices plan to make a mobile purchase in the coming yearAsia-Pacific poised to surpass US in B2C ecommerce spendingChina boasts highest number of e-comm buyers – 220m in 2012
- ECOMMERCE – ONLINE COMMERCEPerfect Example of Globalization – Instant access to the largest market available - 1.5 billion connected people and growing!Simply the most cost effective way to open a business. Leveraged the most radical innovations – The internet & mobileForced Retailers to break old paradigms Ecommerce challenges and Opportunties in 2014‘Mobile First’ philosophy will drive growthLogistics have to shine - Faster and Intutive ShippingEcommerce will get more social Personalized ExperiencesAdvanced Analytics & Big Data will become accessibleThe Industry will Consolidate FurtherIt will be about seamless multi-channel experienceStartups will continue to mushroom; most will perish
- Only 15% of retailers with FB apps had browsing in 2013 vs 62% in 2012Spurring shoppers to create, participate and share is at the heart of most retail social marketing. People follow brands on social media to learn about products. Adding sharing buttons on product pages has become standard (94% of retailers in 2013 vs. 89% in 2012).Social sharing was one of the most effective marketing tactics for increasing conversions in 2013. Performed as well as UGC, product-collections or images & videoSocial media was found influential to inspire people to buy brands/products they had never bought before
- Payment gateways have a high failure rate.As if the preference for cash on delivery was not bad enough, Indian payment gateways have an unusually high failure rate by global standards. Ecommerce companies using Indian payment gateways are losing out on business, as several customers do not reattempt payment after a transaction fails. Feature phones still rule the roost.Though the total number of mobile phone users is very high, a significant majority still use feature phones, not smartphones. So, for all practical purposes this consumer group is unable to make ecommerce purchases on the move. Though we are still a couple of years away from the scales tipping in favor of smartphones, the rapid downward spiral in the price of entry-level smartphones is an encouraging sign. the next few quarters will witness announcements of new smartphones in India at the $30-40 price point. That should spur growth in smartphone ownership.Postal addresses are not standardized.If you place an online order in India, you will quite likely get a call from the logistics company to ask you about your exact location. Clearly your address is not enough. This is because there is little standardization in the way postal addresses are written. Last mile issues add to ecommerce logistics problems. Logistics is a problem in thousands of Indian towns.The logistics challenge in India is not just about the lack of standardization in postal addresses. Given the large size of the country, there are thousands of towns that are not easily accessible. Metropolitan cities and other major urban centers have a fairly robust logistics infrastructure. But since the real charm of the Indian market lies in its large population, absence of seamless access to a significant proportion of prospective customers is a dampener. The problem with logistics is compounded by the fact that cash on delivery is the preferred payment option in India. International logistics providers, private Indian companies, and the government-owned postal services are making a valiant effort to solve the logistics problem. If someone could convert the sheer size of the problem into an opportunity, we might soon hear of a great success story coming out of the Indian logistics industry.Overfunded competitors are driving up cost of customer acquisition.The vibrancy in the Indian startup ecosystem over the past couple of years has channeled a lot of investment into the ecommerce sector. The long-term prospects for ecommerce companies are so exciting that some investors are willing to spend irrationally high amounts of money to acquire market share today. Naturally the Indian consumer is spoiled for choice. However, this trend has reversed as investors are getting worried about slipping further down a slippery slope, expect more rational behavior in 2014.While this article focuses on ecommerce challenges in India, an intrinsically one-sided topic, it is important to note that ecommerce giants are increasingly attracted to India. Cross-border ecommerce to India is growing, and many large international players are also making a significant investment in setting up shop in India.over the past three years, 49 venture capital firms had invested US$853 million in 53 e-commerce companies. There will be massive consolidation among these 53 companies over the next year - It is unlikely that more than 15 will survive as independent entities by 2014,Logistics Will ShineOne of the enablers of cross-border ecommerce will be reliable logistics services. Shorter Delivery Periods: Some expect logistics to reach a point where those much-hyped Amazon drones buzz around the cityscape, delivering goods instantly. That piece of science fiction apart, delivery periods are indeed getting shorter — be it next-day delivery in major cities or faster deliveries across borders.Lower Shipping Costs: With the growth in ecommerce volumes, many logistics players have achieved critical mass on an increasing number of routes. As a result, we will see more affordable shipping costs in 2014 — especially when one factors in inflation of input costs for logistics providers.Not Just Delivery: Logistics has never really been only about delivering the product. There is planning, analytics, documentation, compliance, disclosure, taxation, and a whole lot more. In 2014, logistics players will provide even more value-added services specific to ecommerce.If effective logistics is not your strength, then you need to make it one.Ecommerce Will Get More SocialThis trend manifested itself quite strongly in 2013. In 2014, anaccelerated social influence on ecommerce. This will take many forms — from greater integration of online purchases with social platforms, to a higher correlation between your purchases and those by others in your network.As an ecommerce player, you cannot be seen as barely keeping up with expectations — such as only allowing Facebook logins and displaying the “Like” button on your website. Far greater social integration is expected.Advanced Analytics Will Become AccessibleData analytics is not a new field. All ecommerce websites have some form of analytics installed. But while extensive data mining and advanced analytics were the previously the privilege of the biggest ecommerce players, predict that 2014 will witness a clear trend of advanced analytics becoming accessible to small and mid-sized businesses.Ecommerce players that harness the benefits of data analytics can develop a strong competitive edge.The Ecommerce Industry Will Consolidate Furtherbetter part of the past five years as a phase in which ecommerce businesses bloated on investor’s money, and common sense economics took a back seat. 2013 demonstrated some correction to that insanity, and the ecommerce industry saw some consolidation. See more consolidation in 2014.If you are not specifically facing a liquidity crisis, look around for outstanding acquisition opportunities.It Will Be About Multiple Devices and Multiple ChannelsIn the past 18 months, mobile ecommerce has seen a nice spurt, with the greatest growth coming from tablet devices. But this observation does not interest most ecommerce marketers, as they have categorized it as a foregone conclusion. As a result, it has now become silly to advise ecommerce businesses to ensure that their websites are responsive — because that is obvious. What is not obvious is that classic physical retailers seem to have accepted ecommerce and showrooming (the practice of checking products at a physical store, while buying them online) as realities, and are now willing to explore multiple sales channels, with ecommerce being a big part of the plan.In 2014, no ecommerce player will be forgiven for ignoring mobile devices. At the same time, don’t think of the multi-channel approach as a strategy in itself. The real strategy is customer service. And since the customer buys through multiple channels, you need to be present in most.Startups Will Continue to Mushroom; Most Will PerishSetting up an ecommerce business for the domestic market was always easy; there are actually online guides that claim to help you set one up in 5 minutes. 2014 will continue the trend of more ecommerce startups opening shop and joining the gold rush. Sadly, do not see most of them being able to deal effectively with the skyrocketing costs of customer acquisition.Setting up an ecommerce website is nothing. Setting up a business that executes its mission — while sustaining economic principles — is the challenge.
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/http://www.zdnet.com/in/india-e-commerce-industry-faces-consolidation-7000016219/http://www.atkearney.com/consumer-products-retail/global-retail-development-index/full-report/-/asset_publisher/oPFrGkbIkz0Q/content/2013-global-retail-development-index/10192Regulatory IssuesInconsistency: At the bare minimum, business requires consistency in regulation. But the challenges that ecommerce is throwing at regulators is causing them to repeatedly change their mind. Even in developed countries, such as the U.S., there is debate about the applicability of state taxes on ecommerce transactions, so you can imagine the inconsistency of legal and tax regulations in less developed countries like India. Domestic incorporation: Several countries treat domestic companies quite differently from those incorporated abroad. So if you are serious about selling to customers in a specific country, you might find it to your advantage to incorporate locally.Legal limitations to sale: Every country has its unique set of dos and don’ts about what can be sold to whom. Most countries consider transactions entered into by minors as unenforceable, but the exact age of legal adulthood varies by country. Likewise, several categories of products — food, alcohol, weapons, and antiques, among others — have specific requirements. Even as an ecommerce business, you can be held liable for not meeting those requirements. For instance, a customer’s country might mandate that all packaged food must have the ingredients, nutritional values, manufacturing date, and expiration date printed on the label. If you are shipping goods from a country that does not meet these regulations, you could be in violation of local laws in the customer’s country.Clarity and strength of legal frameworks: It’s not just about meeting local laws — it’s also about having recourse to courts and competent authorities when the need arises. Several countries around the world have a rather weak legal framework. Even where the framework is sound, there is often a huge issue with delays in the judicial process. So, while an ecommerce player selling to another country will be bound to live up to the regulations of that country, for all practical purposes it may not be able to defend its legal rights there.
- Payment gateways have a high failure rate.As if the preference for cash on delivery was not bad enough, Indian payment gateways have an unusually high failure rate by global standards. Ecommerce companies using Indian payment gateways are losing out on business, as several customers do not reattempt payment after a transaction fails. Feature phones still rule the roost.Though the total number of mobile phone users is very high, a significant majority still use feature phones, not smartphones. So, for all practical purposes this consumer group is unable to make ecommerce purchases on the move. Though we are still a couple of years away from the scales tipping in favor of smartphones, the rapid downward spiral in the price of entry-level smartphones is an encouraging sign. the next few quarters will witness announcements of new smartphones in India at the $30-40 price point. That should spur growth in smartphone ownership.Postal addresses are not standardized.If you place an online order in India, you will quite likely get a call from the logistics company to ask you about your exact location. Clearly your address is not enough. This is because there is little standardization in the way postal addresses are written. Last mile issues add to ecommerce logistics problems. Logistics is a problem in thousands of Indian towns.The logistics challenge in India is not just about the lack of standardization in postal addresses. Given the large size of the country, there are thousands of towns that are not easily accessible. Metropolitan cities and other major urban centers have a fairly robust logistics infrastructure. But since the real charm of the Indian market lies in its large population, absence of seamless access to a significant proportion of prospective customers is a dampener. The problem with logistics is compounded by the fact that cash on delivery is the preferred payment option in India. International logistics providers, private Indian companies, and the government-owned postal services are making a valiant effort to solve the logistics problem. If someone could convert the sheer size of the problem into an opportunity, we might soon hear of a great success story coming out of the Indian logistics industry.Overfunded competitors are driving up cost of customer acquisition.The vibrancy in the Indian startup ecosystem over the past couple of years has channeled a lot of investment into the ecommerce sector. The long-term prospects for ecommerce companies are so exciting that some investors are willing to spend irrationally high amounts of money to acquire market share today. Naturally the Indian consumer is spoiled for choice. However, this trend has reversed as investors are getting worried about slipping further down a slippery slope, expect more rational behavior in 2014.While this article focuses on ecommerce challenges in India, an intrinsically one-sided topic, it is important to note that ecommerce giants are increasingly attracted to India. Cross-border ecommerce to India is growing, and many large international players are also making a significant investment in setting up shop in India.over the past three years, 49 venture capital firms had invested US$853 million in 53 e-commerce companies. There will be massive consolidation among these 53 companies over the next year - It is unlikely that more than 15 will survive as independent entities by 2014,Logistics Will ShineOne of the enablers of cross-border ecommerce will be reliable logistics services. Shorter Delivery Periods: Some expect logistics to reach a point where those much-hyped Amazon drones buzz around the cityscape, delivering goods instantly. That piece of science fiction apart, delivery periods are indeed getting shorter — be it next-day delivery in major cities or faster deliveries across borders.Lower Shipping Costs: With the growth in ecommerce volumes, many logistics players have achieved critical mass on an increasing number of routes. As a result, we will see more affordable shipping costs in 2014 — especially when one factors in inflation of input costs for logistics providers.Not Just Delivery: Logistics has never really been only about delivering the product. There is planning, analytics, documentation, compliance, disclosure, taxation, and a whole lot more. In 2014, logistics players will provide even more value-added services specific to ecommerce.If effective logistics is not your strength, then you need to make it one.Ecommerce Will Get More SocialThis trend manifested itself quite strongly in 2013. In 2014, anaccelerated social influence on ecommerce. This will take many forms — from greater integration of online purchases with social platforms, to a higher correlation between your purchases and those by others in your network.As an ecommerce player, you cannot be seen as barely keeping up with expectations — such as only allowing Facebook logins and displaying the “Like” button on your website. Far greater social integration is expected.Advanced Analytics Will Become AccessibleData analytics is not a new field. All ecommerce websites have some form of analytics installed. But while extensive data mining and advanced analytics were the previously the privilege of the biggest ecommerce players, predict that 2014 will witness a clear trend of advanced analytics becoming accessible to small and mid-sized businesses.Ecommerce players that harness the benefits of data analytics can develop a strong competitive edge.The Ecommerce Industry Will Consolidate Furtherbetter part of the past five years as a phase in which ecommerce businesses bloated on investor’s money, and common sense economics took a back seat. 2013 demonstrated some correction to that insanity, and the ecommerce industry saw some consolidation. See more consolidation in 2014.If you are not specifically facing a liquidity crisis, look around for outstanding acquisition opportunities.It Will Be About Multiple Devices and Multiple ChannelsIn the past 18 months, mobile ecommerce has seen a nice spurt, with the greatest growth coming from tablet devices. But this observation does not interest most ecommerce marketers, as they have categorized it as a foregone conclusion. As a result, it has now become silly to advise ecommerce businesses to ensure that their websites are responsive — because that is obvious. What is not obvious is that classic physical retailers seem to have accepted ecommerce and showrooming (the practice of checking products at a physical store, while buying them online) as realities, and are now willing to explore multiple sales channels, with ecommerce being a big part of the plan.In 2014, no ecommerce player will be forgiven for ignoring mobile devices. At the same time, don’t think of the multi-channel approach as a strategy in itself. The real strategy is customer service. And since the customer buys through multiple channels, you need to be present in most.Startups Will Continue to Mushroom; Most Will PerishSetting up an ecommerce business for the domestic market was always easy; there are actually online guides that claim to help you set one up in 5 minutes. 2014 will continue the trend of more ecommerce startups opening shop and joining the gold rush. Sadly, do not see most of them being able to deal effectively with the skyrocketing costs of customer acquisition.Setting up an ecommerce website is nothing. Setting up a business that executes its mission — while sustaining economic principles — is the challenge.
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/http://www.zdnet.com/in/india-e-commerce-industry-faces-consolidation-7000016219/http://www.atkearney.com/consumer-products-retail/global-retail-development-index/full-report/-/asset_publisher/oPFrGkbIkz0Q/content/2013-global-retail-development-index/10192Logistics and Reverse LogisticsUnless you are exclusively selling digital downloads, you will have to develop a strong logistics process. Effective logistics has repeatedly proven to be a strong competitive advantage for online, as well as offline, retailers. The costs associated with cross-border logistics can be the tipping point for your ecommerce business.But it is not just about the costs. It is also about reliability and predictability. I have come across several small ecommerce businesses that work on the premise that their role ends once they can prove that they handed over the goods to the logistics provider. But that is not how the customer thinks. Customers believe that you are responsible for ensuring that the product reaches them.And if your delivery logistics are complex, imagine the complexity of reverse logistics. Given the costs, customs duties, and documentation, many ecommerce players may not be able to provide reverse logistics in cross-border situations.
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/http://www.zdnet.com/in/india-e-commerce-industry-faces-consolidation-7000016219/http://www.atkearney.com/consumer-products-retail/global-retail-development-index/full-report/-/asset_publisher/oPFrGkbIkz0Q/content/2013-global-retail-development-index/10192Organizational ReadinessAny discussion on the constraints to international ecommerce will be incomplete if we do not focus on the business’s own readiness for selling abroad. Right from an appreciation of local tastes to sensitivity for cultural factors, you must develop a deep understanding of every market you intend to tap.Despite the list of challenges mentioned in this article, cross-border ecommerce presents huge business potential in growing economies around the world. A judicious approach will help you reap the fruits of cross-border ecommerce.
- OFFLINE COMMERCESTILL THE BULWARK OF RETAIL COMMERCE IN THE WORLDBUT RAPIDLY CHANGING CUSTOMER PREFERENCES WILL FORCE EVOLUTIONMultichannel shoppers spend 82% more compared to those who only buy in-storeNo one country emerged as the hottest new market for retail expansion38% of all retail transactions are now influenced by the internet in UKThe multi-channel consumer is particularly well informed about the products they buy and this greater confidence is resulting in a higher value and a higher volume of purchases.Retailers have, to a great extent been like the allegorical frog in a pot of water that slowly comes to a boil without it realizing it.eCommerce is going to keep growing until traditional retailers start delivering a more engaging in store experience and even then that will just slow its growth.increasingly polarized world of greater channel fragmentation that will result in greater non-store retail growth and smaller retail formats.Its easy to flog offline but real issues exist OFFLINE TO ONLINE – TRANSITIONAL CHALLENGESBig challenge for retail – turning online “saves” into offline purchasesOrganizational readiness Paradigm shift towards consumer taking over powerretailers will need to prepare for a wall-less omnichannel retail worldconsumers believe the best thing retailers can do to improve shopping is to better integrate the offline and online shopping experience. The same study found that 89% of consumers want retailers to let them shop in the way that is most convenient for them.
- OFFLINE COMMERCESTILL THE BULWARK OF RETAIL COMMERCE IN THE WORLDBUT RAPIDLY CHANGING CUSTOMER PREFERENCES WILL FORCE EVOLUTIONMultichannel shoppers spend 82% more compared to those who only buy in-storeNo one country emerged as the hottest new market for retail expansion38% of all retail transactions are now influenced by the internet in UKThe multi-channel consumer is particularly well informed about the products they buy and this greater confidence is resulting in a higher value and a higher volume of purchases.Retailers have, to a great extent been like the allegorical frog in a pot of water that slowly comes to a boil without it realizing it.eCommerce is going to keep growing until traditional retailers start delivering a more engaging in store experience and even then that will just slow its growth.increasingly polarized world of greater channel fragmentation that will result in greater non-store retail growth and smaller retail formats.Its easy to flog offline but real issues exist OFFLINE TO ONLINE – TRANSITIONAL CHALLENGESBig challenge for retail – turning online “saves” into offline purchasesOrganizational readiness Paradigm shift towards consumer taking over powerretailers will need to prepare for a wall-less omnichannel retail worldconsumers believe the best thing retailers can do to improve shopping is to better integrate the offline and online shopping experience. The same study found that 89% of consumers want retailers to let them shop in the way that is most convenient for them.
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- http://internetretailing.net/2010/12/multichannel-shoppers-spend-82-more/ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- ECOMMERCE – OFFLINE COMMERCEHOPE EXISTS- As online sales skyrocket in developing markets, an online presence is a low-risk way to test new markets and complement existing store footprints. - retailers will have a more granular comprehension of product movement.- speed of technology innovation will further transform the retail landscape- “Are you omni?” Because, make no mistake, your shoppers are.- It's time to play to win and stop playing not to loseGenerational difference is creating two mega-cohorts – the ‘over 50’s’ and ‘under 30’s’ – dividing markets into two distinct shopping nations. “The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences,” said Bryan Gildenberg, Kantar Retail’s Chief Knowledge Officer. “Retailers must do away with the ‘one size Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments.”“Retailers must rethink where and how they sell and operate for future growth. Brick-and-mortar retail operators will be under pressure to balance localization and personalization in an increasingly global world. Retailers will need to seek a balance between global skill sets that can be applied everywhere and a need to adapt to the local market.”
- STRATEGIES FOR TRADITIONAL OFFLINE RETAILERS Total value chain management: Retailers will need to integrate themselves seamlessly into their shoppers’ replenishment processes, and best-in-class retailers will find ways to act as a bridge between this real-time consumer data and the rest of the supply chain.Dynamic clustering to optimize fragmented growth: Forward-looking retailers will reframe the way their teams think about retail by consistently experimenting with structure and adapting it to shoppers’ cultures.Competing on a truly global scale: Best-in-class retailers will operate using the concept of trading ecosystems, capable of understanding how those ecosystems require different competitive strategies.Branding in omnichannel space: Leading retailers will need to build key capabilities and new multimedia, omnichannel-enabling tools to allow customers to interface through any channel of their preference on a 24/7 basis.Managing data security and privacy: Retailers will need to master building digital engagement segmentation, cost/benefit/risk management and reputation recovery processes.Managing diverse retail models: Leading retailers will need to address the challenges to their economic models and adapt their frame of mind on store formats, employment models and return on investment.----Find customersSatisfy customersVarious value chains on logistics
- Perfect Example of Globalization – Instant access to the largest market available - 1.5 billion connected people and growing!Simply the most cost effective way to open a business. Leveraged the most radical innovations – The internet & mobileForced Retailers to break old paradigms